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Yearender 2022: Charging the Indonesian EV battery megaproject
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Shift to electric: President Joko “Jokowi” Widodo inspects an electric car and battery charging device on the sidelines of the groundbreaking of South Korean EV battery plant in Karawang, West Java on Sept. 15, 2021. (Antara/Media Press Bureau of Presidential Secretariat/Agus Suparto)
T
he Indonesian electric vehicle (EV) industry ecosystem has attracted billions of dollars of commitments from foreign investors to the country this year, a boon that will face hurdles going forward.
Both state-owned enterprises (SOEs) and private firms are getting the investment pledges they need to develop high value-added technologies, such as raw material smelters and battery-manufacturing plants.
Data from the Investment Ministry from January to September this year showed that realized investment in the metals industry increased by around 59.37 percent year-on-year (yoy) to Rp 131.8 trillion (US$8.5 billion), with a huge amount of this coming from foreign investors.
Capital injection in the logistics sector and mining sector, meanwhile, increased by around 22 percent yoy to Rp 97.6 trillion and around 81.05 percent yoy to Rp 96.5 trillion, respectively.
“There is a match in growth between the investments in mining, metals and industrial areas,” Investment Minister Bahlil Lahadalia told The Jakarta Post in an exclusive interview in November.
Read also: Going heavy on metals: Jokowi vows to keep minerals at home
Indonesia Battery Company (IBC), the state-owned holding firm created last year with the aim of synchronizing government efforts to build an EV battery ecosystem, laid out its detailed grand plan with two foreign firms in September.
